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Commercial banksâ€™ external assets increases 8% in Azerbaijan

29 January 2010 17:04 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. As of January 1, total foreign assets of Azerbaijan-based commercial banks stood at AZN 1 273.7 million, up 8% or AZN 94 million from a year ago.

However, the banksâ€™ total external assets grew by 11.7% or AZN 133.2 million during December alone, said the Central Bank of Azerbaijan.

The growth in commercial banksâ€™ total external assets has become commonplace in recent years, as the growth was 14% in 2006, 66% in 2007 and 2.3 times in 2008.

As of January 1, foreign liabilities stood at AZN 1 932.3 million, down 5.7% or AZN 116.2 million from a year ago as we have seen negative balance of foreign capital since 2006.

This shows that Azeri banks are still play as capital importers because of several factors including lack of adequate free funds in the bank system and the central bankâ€™s policy to limit money stock as part of inflation curbing policy.